52-Week Low Alert: Trading today’s movement in HOSTESS BRANDS INC CLASS A COMMON STOCK $TWNK

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Quantchabot has detected a promising Covered Put trade opportunity for HOSTESS BRANDS INC CLASS A COMMON STOCK (TWNK) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TWNK was recently trading at $10.17 and has an implied volatility of 4.74% for this period. Based on an analysis of the options available for TWNK expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $9.29-$10.17 at expiration. In this scenario, the average linear return for the trade would be 32.00%.

52 week low: HOSTESS BRANDS INC CLASS A COMMON STOCK recently reached a new 52-week low at $9.48. TWNK had traded in the range $9.51-$14.86 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if TWNK maintains its current direction and does not revert back to pricing on the bullish side of $10.17 on 17-Apr-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if the underlying closes within the analyzed range on 17-Apr-2020.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.